A report from the Idaho Statesman. "The Treasure Valley residential housing market declined again in November, with prices falling and sales sharply below year-earlier levels. The MLS said 580 homes sold in the valley last month, 40 percent fewer than the same month a year ago. November's totals were 46 percent fewer than the 1,068 homes sold in November 2004, a year industry members say reflects more-normal sales in the area."

"In Ada County, the median price was $215,000, a 7 percent decline from the same month a year ago. Industry experts say they are encouraged that building lots selling for six figures a year ago have in some places fallen below $50,000."

The Oregonian. "This weekend, and this weekend only, home builder Roger Pollock is auctioning off more than 200 homes he couldn't sell in the slowing housing market. Real Estate Disposition Corp. attracted more than 1,200 people with a Web site and newspaper and TV ads that promoted prices as much as 50 percent off the previous list price."

"'It's kind of crazy,' says contractor Will Davis as the auctioneer's next sale booms out of speakers at rock concert decibels. 'I think it's fun. Usually the noise gets people bidding much higher than they would.'"

"'Our idea is to expose these properties to people who may not be aware of them,' said Joe Joffrion, executiveVP of Real Estate Disposition Corp. 'Then bring a bunch of people into a room to create the market value.'"

"Later on, organizers would hand out coffee and candy. Sugar, one person said, to get them excited to bid more."

"The Davises knew about the unpublished 'reserve price' that represents the lowest price the builder is obligated to accept. They picked out 10 homes they wanted after visiting 90 and creating a detailed spreadsheet to rank parts of the homes."

"In front of the Davises, a few 'ringmen' -- including one woman -- wave their arms and scream to signal bidders to the auctioneer. They visit people whose bid got bypassed by a higher one, wiggling their fingers to draw a higher bid."

"Davis passes on most homes. He likes No. 43, a five-bedroom, 3,500-square-foot place in Happy Valley. He raises his bidding sheet for $350,000, his top limit. Not bad for a home once valued at $530,000."

"Davis had it for about 10 seconds before he was passed by. The woman 'ringman' comes by. 'Is it still too much?' she asks. 'Is it $350?' he jokes. '$395,' she replies. Her sales pitch doesn't work."

"Loc Hoang was among those who got just what he wanted. He's always wanted to move to Happy Valley, where his friends live. 'The prices have been too high,' he said."

"Not any longer. Hoang left after buying a three-bedroom, 4,400-square-foot place. The builder said he once had advertised it for $620,000. Hoang said he paid $450,000."

From KATU 2 in Oregon. "It certainly sounds like an incredible opportunity - the chance to buy a home at 40 percent of the original asking price. But like anything that sounds too good to be true, we learned you have to look at the fine print."

"'We built too many houses when the times were good,' said Pollock. 'And we have an … excess of inventory and we want to sell it.'"

"His brochure advertises bids starting as low as $149,000 for homes previously listed at prices up to $688,000."

"But some real estate experts say you should be wary of such opportunities. 'Whenever a situation arises where something sounds a bit too good to be true, I think there usually is a reason for that,' said Mike Hasson, president of Hasson Realtors. 'And I've seen a lot of fallout in those situations.'"

"He and his managing principle broker, Dennis Kelly, point to the fine print on the auction rules as reasons for concern. One line states that an inspection after the auction cannot be used as a condition of the sale. It says: 'No sale will be contingent upon inspection of the property after the auction unless otherwise specifically permitted under the purchase agreement.'"

"But that purchase agreement isn't available until the day of the auction, which Kelly said raises another red flag."

"'There's a lot of gray areas that haven't been … worked out, and unfortunately you're not going to be able to work those out until you're sitting down there and trying to sign this paperwork,' he said."

"Also, the auctioneer himself is allowed to bid up the price on behalf of the seller, and they 'have the right to postpone or cancel the auction … and to change any terms … or particular conditions of sale …' just by announcing it during the event, the rules state."

"Finally, there's this point: bidders must bring cash or a cashier's check in the amount of $5,000 as an earnest money deposit."

"However that money is non-refundable on site if the winning bidder uses the auction's financing but for some reason the deal doesn't go through and the buyer wants to pull out, Pollock said."

The Daily News from Washington. "November marked only the second time over two years in which the monthly median price fell below the level of a year earlier in Cowlitz County. The other was in May 2007, when the price tumbled 7.36 percent from May 2006."

"Although the once-superheated local housing market is cooling a bit, the new numbers don't necessarily indicate a downward spiral in housing prices, said Scott Bailey, regional economist for state's Employment Security Department."

"'It sounds like it's pretty steady (upward) and happened to dip this month,' Bailey said. A three-month decline, he said, would create a trend."

"The number of homes on the market last month soared to 751, up by about 190 over a year earlier. Eighty-two houses sold last month, 18 fewer than in November 2006. And so far this year, the number of homes sold is down 24 percent."

"Jerry Flaskerud, a broker in Longview, said he's expected the median price to come back down to around $185,000. 'I don't think that's a signal of decline. I think it's a signal of the market plateauing,' Flaskerud said."

The Seattle PI from Washington. "Three months after he and other soldiers received a welcome home from their 15 months in Iraq, Sgt. Marcus Barton and his family might soon be losing theirs."

"Their small part of the American dream is a wood-frame $152,000 house bought three years ago for nothing down but with plans of fixing it up and reselling it. In the three months since he's returned home, the Bartons have been treading water while debt mounts and their credit rating plummets."

"Their mortgage payments went from $850 to $1,350 a month in the summer. The family's expenses on its total debts are more than $4,000 a month. The Bartons have maxed out their credit cards but have managed to keep up with their house payments."

"Some of the kids' toys are being returned. Barton is selling off banisters, countertops and other bargains he shopped for to renovate his house. He has swapped his car for a beater, and he eyes his television and computer as barter bait."

"'I'm Craigslisting everything,' Barton said."

"'When I call lenders, they say, 'no problem' and thank me for my service. Then in 20 minutes they say there is nothing they can do when they see my credit score,' he said."

"One company offered a loan that would reduce the family's payments from the current $4,600 a month to around $2,700. 'I need a co-signer,' Barton said. 'The problem is I don't have anybody. I'm the success story in my family.'"

"He also could go take his family back to post housing and has signed up to do so if he loses his house. But the Tacoma house is home."

"It snowballed with payments on a second mortgage, utilities, a car and other expenses. Credit cards haven't been paid in four months."

"'Before this, we were always on time with all my bills; we had a great credit score. I never missed a mortgage payment, car payment, credit payment,' Barton said. Sarah finds occasional work. Barton, who is on leave until January, said he wanted to take a second job but his wife discouraged him, noting he needs to needs to rest and relax after 15 months in a combat zone."

The Heraldnet from Washington. "Question: We are thinking about refinancing our home and pulling out some cash. But with the holidays coming up...we are planning to wait until after the first of the year....But we are concerned about your predictions that home values will fall. Are prices already starting to come down? If so, should we refinance now?"

"Answer: You should refinance as soon as possible because the longer you wait, the more equity you are likely to lose."

"As I said before, I expect home prices to drop about 10 percent to 20 percent over the next year or so, and then the housing market will flatten out with very little appreciation or depreciation for a few years."

"And it's already happening in several areas of the Puget Sound region."

"One of the top local appraisers that we often use at my mortgage company says that about 75 percent of the homes that he is appraising today have comparable home sales in their neighborhood with depreciating prices."

"A house in West Seattle that was purchased for $499,000 on May 23 recently appraised for $470,000. That's a price drop of 6 percent in only six months. A three-bedroom condo in Renton that sold for $360,000 on Sept. 29, 2006, recently appraised for $335,000. That's a decline of almost 7 percent."

"And the sad part is that most people don't even realize that this is happening. They still have the idea that their home is worth what it was at the peak of the housing market."

"If you currently owed $300,000 on a $400,000 home. You would have no problem refinancing and pulling cash out because you have $100,000 worth of equity in your home. But what happens if the value of your home drops 20 percent?"

"Your $400,000 house would then be worth only $320,000 and you would have only $20,000 worth of equity in the home. That's a loan-to-value ratio of almost 94 percent, which means you could no longer pull our any cash, and you barely have enough equity to do a 'rate and term' refinance to get a lower interest rate if mortgage rates come down."

"And what if you owed $350,000 instead of $300,000 at the start of this example? If your home value dropped 20 percent to $320,000, you would find yourself in the very uncomfortable position of owing more on the home than it's currently worth. So if you're thinking about refinancing, don't delay."